Reeves Holds Pre-Budget Conference Amid Stronger Than Expected Tax Receipts
On 4 November, Reeves held an extraordinary pre-Budget news conference to set the ground for a Budget involving difficult choices. In her breakfast speech that day, she reinforced her stance on upcoming tax rises and emphasized the importance of addressing the cost of living, seeking more headroom against fiscal rules. The Office for Budget Responsibility was expected to revise down productivity growth, which would impact fiscal numbers and decisions. Mason stated Reeves knew at the time of the conference that tax receipts were much stronger than expected and would offset the productivity decline, information she did not disclose then. Ten days later, the Treasury voluntarily released information about the stronger tax receipts after the Financial Times reported that income tax rates would not change in the Budget, aiming to reassure markets. Mason argued that a subsequent briefing to him and others conveyed a more reassuring picture that accurately reflected the stronger receipts while omitting the immediate context. The Treasury maintains it was unfair to claim she was misleading, as she faced a significant fiscal gap and needed headroom for policy choices.
